ICAEW.com works better with JavaScript enabled.

Investment appraisal

Articles, reports and other resources that enable accountants in business to make a real difference to their organisations by providing them with practical information on the latest thinking in investment appraisal.

Saving for a rainy day

With the end of the tax year fast approaching, Richard Bertin of FF&P Wealth Planning gives some tips and reminders to help you make the most of your money.

Investor relations and the FD

This is exclusive item - please log in or subscribe to view this item.

February 2007, John Kershaw, Margaret Ewing, Mark Garratt and Raghnall Craighead

Special report: Investment appraisal

This special report looks at the key issues and advises managers on how they can contribute effectively to decision making and control during the process of investment appraisal.

Making better investment decisions

This is exclusive item - please log in or subscribe to view this item.

Chris Jackson, head of the Finance and Management Faculty, introduces recently published IFAC guidance on the use of discounted cash flow analysis and net present value in evaluating investments, and outlines the underlying principles.

How to evaluate real options

This is exclusive item - please log in or subscribe to view this item.

The notion of ‘real options’ applies option pricing theory to non-financial assets. The complexity of modelling investments as options means that, to date, options literature has had relatively little impact on management practices. Here Roger Mills, professor of accounting and finance at Henley Management College, examines recent attempts to find an optimum methodology for evaluating real options.

Valuation of companies

This is exclusive item - please log in or subscribe to view this item.

This article builds on previous work in the series to examine ways of valuing companies. There is no ‘correct’ answer to the question ‘what is the company worth ?’, but there are some standard valuation techniques. The methods used most commonly in practice are discussed, together with their advantages and disadvantages.

The cost of capital

This is exclusive item - please log in or subscribe to view this item.

We conclude our series about the cost of capital with an article that brings together key points from the earlier contributions. It explains how to calculate the weighted average cost of capital, which is suitable for the appraisal of projects where the risk profile matches that of the organisation as a whole. A method of adjusting for project risk is illustrated by a useful worked example.

Post Completion Review

This is exclusive item - please log in or subscribe to view this item.

Good Practice Guideline Issue 14 - June 1996